A manufacturing company’s balance sheet and income statement differ from those for a merchandising or service company.

Required 1. Fill in the [BLANK] descriptors on the partial balance sheets for both the manufacturing company and the merchandising company. Explain why a different presentation is required.

2. Fill in the [BLANK] descriptors on the income statements for the manufacturing company and the merchandising company. Explain why a different presentation is required.

3. A manufacturer’s cost of goods manufactured is the sum of

(a) _,

(b) _, and (c)_costs incurred in producing the product.

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Manufacturing Company ADIDAS GROUP Partial Balance Sheet December 31, 2013 Merchandising Company PAYLESS SHOE OUTLET Partial Balance Sheet December 31, 2013 Current assets Current assets Cash...... $10,000 Cash..... $ 5,000 [BLANK] 8,000 [BLANK] 12,000 [BLANK] 5,000 Supplies. 500 [BLANK] 7,000 Prepaid insurance ..... 500 Supplies 500 Total current assets. $18,000 Prepaid insurance 500 Total current assets....... $31,000